Zynex (NASDAQ:ZYXI) and Cutera (NASDAQ:CUTR) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Profitability
This table compares Zynex and Cutera's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Zynex | 18.08% | 50.67% | 35.56% |
Cutera | -18.83% | -61.21% | -25.31% |
Insider and Institutional Ownership
29.6% of Zynex shares are held by institutional investors. Comparatively, 87.8% of Cutera shares are held by institutional investors. 50.5% of Zynex shares are held by company insiders. Comparatively, 2.3% of Cutera shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Zynex and Cutera, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Zynex | 0 | 2 | 2 | 0 | 2.50 |
Cutera | 0 | 1 | 3 | 0 | 2.75 |
Zynex currently has a consensus price target of $21.6250, suggesting a potential upside of 46.81%. Cutera has a consensus price target of $30.6667, suggesting a potential upside of 10.55%. Given Zynex's higher probable upside, equities research analysts clearly believe Zynex is more favorable than Cutera.
Volatility and Risk
Zynex has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Cutera has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.
Earnings and Valuation
This table compares Zynex and Cutera's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Zynex | $45.47 million | 11.27 | $9.49 million | $0.28 | 52.50 |
Cutera | $181.71 million | 2.69 | $-12,350,000.00 | ($0.88) | -31.18 |
Zynex has higher earnings, but lower revenue than Cutera. Cutera is trading at a lower price-to-earnings ratio than Zynex, indicating that it is currently the more affordable of the two stocks.
Summary
Zynex beats Cutera on 9 of the 14 factors compared between the two stocks.